New Delhi: The concept of the welfare state has evolved significantly over time. The foundational theories, such as those proposed by William Beveridge in the UK, aimed at providing a safety net for citizens through social insurance and public services, intending to combat what Beveridge in his seminal report “Social Insurance and Allied Services” identified as the five “Giant Evils” in society: Want, Disease, Ignorance, Squalor, and Idleness. In contrast, Marxist and Social Democratic perspectives have emphasised the role of the state in redistributing wealth and ensuring social justice, advocating for a more extensive role of the state in economic and social life. Over time, the Keynesian welfare state model emerged, advocating for state intervention in the economy to achieve full employment and social welfare, a sharp departure from laissez-faire economics.

Neoliberal critiques in the late 20th century argued for the rollback of state interventions, emphasising market efficiency and individual responsibility. This led to the emergence of the “social investment state” model, where the focus shifted towards investing in human capital to enhance economic competitiveness and adapt to a globalised economy, rather than merely providing welfare handouts. Post-independence, India adopted a socialist-inspired model with a strong emphasis on state-led development, extensive public sector undertakings, and social welfare programs aimed at poverty alleviation and education. But it failed in alleviating poverty.

Since 2014, India has embarked on a transformative journey in its approach to welfare, adopting a model that transcends the mere provision of basic necessities to one that emphasises empowerment and self-sufficiency among its citizens. This shift is evident in a range of policies and programs that have been designed not only to address immediate needs but also to lay the groundwork for sustainable development and individual agency. The focus of the government has been on empowerment and not on splurging freebies, which tend to have a smaller multiplier effect.

This is precisely what the Finance Minister highlighted in her Interim Budget speech. Over the past ten years, the government has concentrated its efforts on GYAM, which stands for the poor, the youth, the farmers, and women, elements that the Prime Minister refers to as the pillars of the Viksit Bharat.

The shift from a mere entitlement-based approach to poverty alleviation towards empowering the poor has significantly enhanced the government’s capacity to support them. This empowerment-centric strategy has been instrumental in lifting 25 crore individuals out of multi-dimensional poverty. The synergy between government efforts and the newfound energy of these empowered citizens is making a tangible difference, elevating individuals out of poverty and contributing to the nation’s progress.

Significant strides have been made in direct financial interventions, such........

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